This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Penny Stocks With Plenty of Reward

NEW YORK ( TheStreet) - The S&P Small Cap 600 Index registered gains of 9.8% in the past three months as compared to a 6.4% gain recorded by the S&P Index. The current market volatility has thrown up an abundance of penny stocks to suit speculative investors, with many priced below $5. Although investors prefer safe and stable stocks when markets gyrate, they also can consider these penny stocks for potential reward.

Based on average estimates of analysts polled by Bloomberg, these five stocks have potential upsides ranging from 29% to 205%, with an average of 61% of analysts issuing buy ratings.

The stocks are listed in ascending order of upside potential.

5. SiriusXM Radio (SIRI - Get Report) is a satellite radio company. It broadcasts more than 135 satellite radio channels of commercial-free music and other services to over 21 million subscribers in the U.S. The company syndicates content from some of the biggest names in entertainment, as well as from professional sports leagues, major colleges, and providers of national news and talk shows.

Of the 12 analysts covering the stock, 75% recommend a buy and 16.7% suggest a hold. Analysts' average 12-month price target for the stock is $2.28, about 28.9% higher than the current price, according to Bloomberg.

For the third quarter of fiscal 2011, SIRI reported total revenue of $763 million, up 6% from the same quarter last year. Adjusted EBITDA rose 16% to $197 million. Net income was up 54% at $104 million, while free cash flow increased 22%.

The company's subscriber base grew 7% year-over-year to 21.3 million. Net additions for the quarter were 364,004, up 41% from the third quarter of 2010. The self-pay subscriber base reached an all-time high of 17.5 million, growing 7% year-over-year. In October, SIRI launched an expanded channel lineup, such as new music, comedy, sports as well as Sirius XM Latino, a suite of Latin channels.

For fiscal 2012, SIRI anticipates revenue growth of 10% to over $3.3 billion and adjusted EBITDA of 20% to $860 million.

In December, the company announced that it will launch Tiesto's Club Life Radio, the 24/7 commercial-free music channel featuring music by superstar DJ Tiesto.
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ACPW $0.57 0.00%
CPST $1.57 0.00%
FCEL $5.96 0.00%
SIRI $3.95 0.00%
RSYS $4.46 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs